Monopolists can charge any price and sell any amount of output they want because no competition exists.
Answer the following statement true (T) or false (F)
False
Monopolists do not have the ability to charge any price. The price a monopoly can charge is limited by the demand curve, or in other words, consumers' willingness and ability to pay.
You might also like to view...
Featherbedding allows unions to increase wages by:
a. limiting the supply of labor. b. increasing firms' demand for labor. c. forcing firms to accept higher-than-equilibrium wages. d. reducing labor share of payroll taxes.
Answer the following statement(s) true (T) or false (F)
1. The Phillips curve demonstrates a positive relationship between inflation and unemployment rates. 2. Lower real wages make it more profitable for companies to hire additional employees. 3. The relationship demonstrated by the Phillips curve tends to disappear in the long run. 4. As aggregate demand in an economy increases, it moves up and to the left on its Phillips curve. 5. The AD/AS model and the Phillips curve show two completely different and unrelated economic events.